UK Government’s plans revealed
(31 March 2010 – UK) Business Secretary, Lord Mandelson, has allocated £180 million (A$294 million) in funding for the Post Office ‘Peoples’ Bank’, which will path the way for a ‘major expansion’ of the current financial services offered.
Lord Mandelson said that since the global banking crisis the UK Government has set about reinventing the financial services industry piece-by-piece, building a system that is fairer, trusted and more responsible.
This announcement is the next step in that process. The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities, Lord Mandelson added.
The Government has plans to include a children’s savings account and is introducing a current account which can be accessed from any Post Office in the country.
In addition, a ‘weekly budgeting account’ is planned to help people on low incomes manage their household expenses and make savings by taking advantage of the discounts available for using direct debit to pay utility bills.
It is also reported that the government is in negotiations the Royal Bank of Scotland and Santander in an effort to give access to their current accounts through the Post Office.
Santander has already agreed to allow business account holders to go through the network.
New mortgage products will also be offered with a 90 percent LVR targeted at first time buyers.
The ‘Peoples’ Bank’ will also boast an account that encourages savings, The Government will add 50p for every £1 saved if the account holder is a middle aged low-income earner.
This announcement is the next step in that process. The Post Office is a well-loved community institution and this move will bring more banking services back to the heart of those communities, Lord Mandelson added.
The Government has plans to include a children’s savings account and is introducing a current account which can be accessed from any Post Office in the country.
In addition, a ‘weekly budgeting account’ is planned to help people on low incomes manage their household expenses and make savings by taking advantage of the discounts available for using direct debit to pay utility bills.
It is also reported that the government is in negotiations the Royal Bank of Scotland and Santander in an effort to give access to their current accounts through the Post Office.
Santander has already agreed to allow business account holders to go through the network.
New mortgage products will also be offered with a 90 percent LVR targeted at first time buyers.
The ‘Peoples’ Bank’ will also boast an account that encourages savings, The Government will add 50p for every £1 saved if the account holder is a middle aged low-income earner.
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